Frequently Asked Questions

Below are a variety of answers to common questions to help you understand what is involved in Buying, Selling or other related topics. If you have any unanswered questions or need clarification on any of the questions below, call us at (505) 730-8181 or e-mail info@nmrealty.com

BUYER QUESTIONS
_1. How soon could I be in a home?
_2. What are my responsibilities?
_3. Why should I buy instead of rent?
_4. How will I find a home that is just right for me?
_5. How do I get started?
_6. Do I need a REALTOR^® to represent me?
_7. What if I simply work with the seller's REALTOR^®?
_8. What if I represent myself?
_9. What does it cost to have a REALTOR^®?
10. What are a REALTOR^®'s broker duties?
11. Can I have a contract with you?
12. How do I finance a home?
13. How much can I afford?
14. What costs are involved in buying a home?
15. What is earnest money?
16. Do I need money down?
17. What if I have bad credit, no credit or a bankruptcy?
18. Can I buy a car or big ticket item before buying a home?
19. What if I recently bought a car or big ticket item?

SELLER QUESTIONS
_1. How much is my property worth?
_2. What if I feel my property is worth more?
_3. When is the best time to sell?
_4. How soon will my property sell?
_5. Should I buy or sell first?
_6. What are the biggest mistakes home sellers make?
_7. What are your duties to me?
_8. How do I get started?
_9. What do I have to disclose about my property?
10. How can I increase the value of my property?
11. What will I have to do once my property hits the market?
12. Do I have to make repairs?
13. What is the MLS?
14. Will my property be listed on the Internet?
15. Will there be a lock box on my door?
16. Do I need to be home when my property is being shown?
17. Will there be a sign on he property?
18. What costs are involved in selling?
19. What should I expect during closing?
20. When do I have to move out?
21. What if the appraisal comes in lower than the price?
22. When do I receive the funds from the sale?

CAREER QUESTIONS
1. What are the first steps to get started?
2. How much money do I need to get started?
3. Where do I go to get the necessary education?
4. What type of income could I expect?
5. Where can I find more New Mexico license information?
6. What if I have more questions?

BUYER QUESTIONS

1. How soon could I be in a home?
Typically, you could be in a home in as little as 30 days from the time an offer is accepted. This is generally how long it takes to close. Keep in mind that the 30 days does not include the time spent searching for a home or if you purchase a new construction home (New construction homes can take about three to six months to build).

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2. What are my responsibilities?
Remember, your REALTOR^®'s duties are to assist you. Sometimes, helping your REALTOR^® help you can be to your advantage. A successful transaction requires the cooperation from all parties associated with the sale. Your responsibilities can consist of the following:

•  As soon as practically possible, get prequalified. You will save yourself time by knowing what price range of home you can shop for.

•  Cooperate with your REALTOR^®. Trust your REALTOR^®'s knowledge and experience, that your best interests is his/her priority. Be sure to have all the information and paperwork your REALTOR^® needs in a timely manner. 

•  Be sure that you are on time for appointments. Your REALTOR^® represents you and you are a reflection of your REALTOR^®. If your REALTOR^® comes off as unprofessional because you missed an important appointment, it could hurt your negotiating power and leverage you have with the parties involved.

•  Remain flexible and understanding. If a specific home does not have every single amenity you would like, it does not mean it is not the ideal home. Knowing the difference between needs and wants can assist in your home search.

•  Follow your REALTOR^®'s lead. If you walk into the home of your dream and the other agent sees your eyes widen with a bright glow, it will not exactly help your REALTOR^® get the best deal for you. Once the keys are in your hands, your REALTOR^® will be the first to jump up and down with you.

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3. Why should I buy instead of rent?
Unlike renting, a home is not only a place to live, it is an investment. When you make a monthly rent payment, that money is gone, forever. Now, when you make a monthly mortgage payment, it goes towards building equity. Plus, as a homeowner, you can deduct interest from your income taxes and you can also deduct the property taxes. Most of all, you will live in a space that is all yours.

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4. How will I find a home that is just right for me?
Your REALTOR^® has access to the MLS (Multiple Listing Service). The MLS is a comprehensive database of all properties for sale in a given geographical area. A search for a home can be performed to produce listings that fit your criteria. Also, via this specific web site (www.nmrealty.com), a search for new construction homes can be performed.

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5. How do I get started?
All you need to do is call us at (505) 730-8181 or e-mail info@nmrealty.com to get started. We'll help you get connected with a lender as well as begin a search for your new home. Your inquiry will give us an idea of your interests and how best to assist you.

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6. Do I need a REALTOR^® to represent me?
In one word, yes. A REALTOR^® can provide a number of services and advantages that many may not be aware of. Most of all, as a Buyer, it does not cost you anything to have a REALTOR^® represent you.

A REALTOR^® has access to resources that are not available to the public. Not to mention, a REALTOR^® has undergone education specific to the industry's Laws, Practices & Principles. A REALTOR^® has also passed an intensive State & National exam as well as training and ethics courses to ensure you are adequately represented.

A real estate transaction involves one of the biggest financial decisions most people make in their lifetime. A typical purchase of a home requires about two dozen signatures and the understanding of sensitive contracts and forms detailed with fine print. As a Buyer, you need a knowledgeable representative to be there to help you break it down. REALTORS^® can also help you obtain a lender, determine buying power, inform you on down payment requirements, advise on escrow payment matters, property taxes, closing costs and utility bills. REALTORS^®  can also help you find out what benefits you might be eligible for, such as first time buyer benefits or benefits for teachers, policemen, etc.

During a transaction, you will need to know what closing costs you do or do not have to pay. You will also need to understand what disclosures you should be aware of and what they mean. It is important to know any contract you are signing, especially a real estate contract. You want to make sure that you are not agreeing to something you would normally not commit yourself to.

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7. What if I simply work with the seller's REALTOR^®?
The seller's REALTOR^® will be representing his/her client's best interests, not yours. For example, trusting the advice of an attorney representing their own client in a legal matter that affects their personal interests, puts you at a disadvantage. You basically want someone batting for you, not the other team.

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8. What if I represent myself?
Similar to how you would not want to represent yourself in court, you do not want to represent yourself in a real estate transaction. While some may be experienced and skilled in negotiating, the technical and specific issues of real estate are extremely critical. Having a REALTOR^® to dot the i's and cross the t's, can positively support your personal abilities and achieve your ultimate goals.

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9. What does it cost to have a REALTOR^®?
Nothing, zero, nada. It does not cost you anything to have a REALTOR^® represent you. This makes having the assistance of a REALTOR^® priceless. You receive skillful and educated representation without the expense, but with all the benefits.

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10. What are a REALTOR^®'s broker duties?
As your REALTOR^®, you are entitled to a variety of duties ranging from honesty to confidentiality. For a complete outline of broker duties, click here.

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11. Can I have a contract with you?
Yes. We understand that you are committing your time and money towards an important investment. In return, we will commit our time and resources to you.

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12. How do I finance a home?
As a buyer, you have many options, from First Time Home Buyer incentives to Down Payment Assistance programs. Once you speak with a lender, you will be able to determine your financial options and capabilities. To get in touch with a lender or have your lender discuss your options with us, call (505) 730-8181 or e-mail info@nmrealty.com

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13. How much can I afford?
After careful examination of your financial position, a lender can adequately inform you of your buying power. They will take into consideration all options available to you to ensure you have the widest range to work with.

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14. What costs are involved in buying a home?
Like all investments, there are necessary costs involved. One cost you will typically face will be earnest money (Note: Earnest money is applied towards the purchase of the home). Other fees can be found in closing costs which include down payment (Note: Down payment is not necessary in every transaction), filing fees, origination fees, inspection fees, etc. Many of the closing costs are negotiable and will not all apply to your specific purchase.

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15. What is earnest money?
When you sign an offer to purchase property, the seller may require earnest money to be included. It expresses to the seller that you are serious. The amount may vary (e.g. $500, $1,000, etc.) and is always negotiable. The earnest money is applied towards the purchase of the home and can be refunded if you do not qualify for the purchase.

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16. Do I need money down?
Other than earnest money, you may need a down payment. However, with Down Payment Assistance Programs and other incentives available to buyers, you may not need any money down. Once you begin speaking with a lender, you can determine if a down payment is necessary.

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17. What if I have bad credit, no credit or a bankruptcy?
Just because you have bad credit, no credit or a bankruptcy, does not mean you cannot qualify for a home. This is where the prequalification process is necessary to determine your position and available options.

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18. Can I buy a car or big ticket item before buying a home?
It is in your best interest to hold off on any auto or big purchases until after you have purchased a home. Your debt to income ratio is taken into consideration on how much you can afford. Holding off on that big screen TV or new living room set until after the closing on your home could be the difference between qualifying or not.

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19. What if I recently bought a car or big ticket item?
If you have already made a big purchase, it does not mean you are excluded from the opportunity of purchasing a home. You will want to disclose all applicable purchases and existing debt with the lender so that they can determine what is and what is not a factor in your borrowing power.

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SELLER QUESTIONS

1. How much is my property worth?
There are many factors involved in valuing a property. Some factors are: curb appeal, condition, location, season, neighborhood, and size. For a FREE valuation of your home, click here. We can provide you with a Comparative Market Analysis of what your home may be worth.

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2. What if I feel my property is worth more?
It's not uncommon for a seller to feel that their property is worth more than the suggested list price. It's actually normal for an owner to have an emotional attachment to their property, especially since it may carry some sentimental value.

The value estimated on your property is carefully calculated on specific criteria focused on your individual property and properties that previously sold in your neighborhood. While one property may have some upgrades that a similar one doesn't have, won't justify a significant price difference.

The same criteria used to determine value of your property is the same criteria used by appraisers. If the appraised value of your property at closing comes in well under the list price, it could result in the loss of the potential buyer.

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3. When is the best time to sell?
There really is no definitive time frame. Traditionally, Spring is considered the best time to sell. However, while weather considerations can come in to play, the best time to sell depends on various other factors.

When there is less competition from other listings priced in your property's range, buyers will have less to choose from. This is to the seller's advantage. Plus, buyers may tend to be more picky when there are a lot of properties to choose from.

Picking a time to sell can also be determined on your individual needs (e.g. job transfer, military, etc.). Sometimes, there's no better time to sell than now.

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4. How soon will my property sell?
Potentially there is a buyer for every property. Now, what can help speed the process of your property is to increase the amount of potential buyers. This can primarily be achieved by trusting the advice of your REALTOR^®.

Location, condition and pricing are some of the key factors in getting your home sold. Taking into consideration, a unique property may take longer to sell, because a special buyer, one who appreciates the uniqueness, must be found.

Another helpful factor is, the more your property is shown, the quicker a buyer may be found. Also, be flexible about dropping the price if it is necessary. A slight decrease in price could intrigue prospective buyers who formerly showed interest.

The bottom line is, buyers will decide to purchase your home based on comparisons they make against other properties currently for sale. Rest assured that we will work vigorously to sell your property as soon as practically possible.

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5. Should I buy or sell first?
Many buyers may need to sell first in order to free up cash to purchase a new property. A big obstacle in selling first is that you may have to move twice, once into a rental/apartment, then again into your next property.

If you choose to buy a new property before you sell your existing property, you risk having to carry two mortgages until your old property sells.

The advantage of buying a property before you sell your existing property, is that it gives you more time to look for the property that best meets your needs without the pressure of having to move.

It generally comes down to your personal circumstances. We can help you explore your options. 

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6. What are the biggest mistakes home sellers make?
It's important to remember when selling your home, that you're in competition with other sellers in your area. As in any competition, it's important to not make any unnecessary mistakes in order to maintain an advantage over your competition.

Some common mistakes sellers make are:

• Wanting their property priced higher than recommended
• Ignoring their REALTOR^®'s advice
• Not preparing the property for sale
• Not making necessary repairs
• Not keeping the home in showing condition
• Not allowing their home to be shown
• Not leaving the home when it is being shown
• Talking to potential buyers and/or their agents
• Not depersonalizing their home
• Wanting the property listed before it's ready to show
• Hiding or failing to fully disclose problems about the property
• Rejecting offers rather than making a counteroffer
• Not considering a reasonable offer
• Not budging on the price
• Not allowing their listing to be placed on the Internet
• Not wanting their property listed in the MLS
• Not wanting a lockbox for their property

These are only some common mistakes sellers make. It's wise to trust your REALTOR^®'s advice as they have your best interest as their priority.

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7. What are your duties to me?
As your REALTOR^®, you are entitled to a variety of duties ranging from honesty to confidentiality. For a complete outline of broker duties, click here.

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8. How do I get started?
All you need to do is call us at (505) 730-8181 or e-mail info@nmrealty.com to get started. We'll help you with every step in the selling process, from the first to the last.

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9. What do I have to disclose about my property?
As the seller, you are obligated to disclose any information about your property that you know are aware of.

You and your REALTOR^®, are required by law to disclose all facts that materially affect the value or desirability of the property, which are known  to you.

These may include: whether or not work done on the property meets building codes; any neighborhood nuisances or noises that a potential buyer may not notice, restrictions on the use of the property, and any health hazards (e.g. toxic mold, lead-based paint, etc.).

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10. How can I increase the value of my property?
Specific home improvements can increase your property value above the cost of the improvements themselves, such as remodeling a kitchen, adding a bathroom or adding landscaping.

However, over-improving can have a reverse effect. You don't want to invest in improvements that exceed what you can potentially get a return on.

Sometimes, less is more. Your REALTOR^® can make reasonable suggestions that could add value to your property.

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11. What will I have to do once my property hits the market?
You'll want to maintain the condition and show-ready appearance. It's best to keep the property presentable for the second, third, fourth and fifth prospective buyer as presented for the first.

Next, you'll want to leave all the lights on, blinds open and/or curtains drawn every time you leave the property. Your property may be shown unexpectedly and this allows for a prepared, bright and welcoming presence.

Then, you'll want to be sure to leave the property briefly while it is being shown. You want any prospective buyer to have the least amount of distractions when walking through. It gives them the feel as though they actually live there.

Lastly, maintain one of the most challenging virtues, patience. While you may have been told stories of properties that sold within a week, a day or even an hour. Realistically, each property carries its own circumstances and time frame necessary to find a buyer. It can be typical for a property to take three to six months to sell.

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12. Do I have to make repairs?
Some repairs may be required (e.g. toxic mold removal). Others are necessary to enhance the value of the property. The more negatives a prospective buyer can point out, the less attractive the price will be.

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13. What is the MLS?
The MLS (Multiple Listing Service), is a comprehensive database of all properties for sale in a given geographical area. A search for a home can be performed to produce listings that fit a buyer's criteria. This exclusive tool is only available to REALTOR^®s.

The MLS provides an important marketing advantage in selling your property. You maximize the possibility of selling your property more quickly and at a better price when it is listed in the MLS.

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14. Will my property be listed on the Internet?
Absolutely! That is, if you wish to utilize this option. Listing your property on the Internet gives you amazing exposure to thousands of potential buyers. We understand the power of the Internet and specialize in harnessing its power.

A phenomenal percentage of the homes sold are found on the Internet. Having it listed online will increase your chances of selling your home quickly and at your asking price.

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15. Will there be a lock box on my door?
Yes, you have the option of placing a lockbox on your property. A lockbox is s type of safe that contains a key to your property. Only licensed REALTOR^®s will have access to this device to be used as a convenient way to make your property accessible to REALTOR^®s without requiring your presence.

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16. Do I need to be home when my property is being shown?
No, it's highly recommended that you leave briefly while the property is being shown. Taking a short walk or drive gives the buyers an opportunity to comfortably and peacefully view your property.

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17. Will there be a sign on the property?
Yes, this is another valuable option. Having a sign on your property starts the word-by-mouth effect by informing people who pass by that your property is for sale. It also provides a flyer box that contains details about your property to potential buyers.

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18. What costs are involved in selling?
Like in business, it takes money to make money. This applies to almost all investments, including real estate. When an offer is made and accepted, the transaction begins. There are a lot of parties involved that help make the sale complete, from your REALTOR^® to the existing lender. Your REALTOR^® can provide you with a net-out that gives you an estimate of your net profit once all applicable expenses have been deducted.

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19. What should I expect during closing?
During closing, a series of events will unfold. The property may be visited by inspectors, surveyors, appraisers and all other applicable parties. There will also be paperwork that will be completed throughout the closing. As your REALTOR^®, we will make every attempt to make the closing go as smoothly and quickly as possible.

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20. When do I have to move out?
This is specified in the purchase agreement. You can note that you will leave the premises on the funding date or if you need to stay a short while longer, an arrangement will need to be made between you and the buyer.

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21. What if the appraisal comes in lower than the price?
The buyer's lender will provide a loan up to the appraised amount. The buyer than has the option to pay the remaining amount to meet the listed price. If the buyer doesn't have available funds to meet the list price or doesn't wish to pay the additional amount, a mutual compromise may be attempted to save the transaction.

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22. When do I receive the funds from the sale?
Generally, funds are provided on the funding date, the same day when the buyer receives the keys.

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CAREER QUESTIONS

1. What are the first steps to get started?
Like with any new career, you want to consider your personal finances and prepare for a change in your life. Adjusting for necessary bumps in the road can ease your transition into real estate.

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2. How much money do I need to get started?
Starting out in real estate is similar to starting your own business. However, unlike some business ventures that cost tens of thousands to hundreds of thousands in order to get established, you can rest assure to know that this venture is quite different. You will see several one-time, annual and monthly costs. These costs include, but are not limited to: real estate courses, exam and license fees.

Unless you have a significant other that has existing employment while you set out on this venture, it's recommended to have about 3 to 6 months of expenses (e.g. mortgage/rent, car payment, etc.) in reserves.

While you may be seeking an exact figure, the best we can do is provide a suggested minimum amount to have on hand for startup costs. Having about $3,000 would cover costs such as:

The startup costs for real estate are significantly lower than the $200,000 minimum funds to open up a McDonalds Franchise. Making it easier, the above fees can be paid for with a major credit card, instead of a 6 figure business loan.

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3. Where do I go to get the necessary education?
There are a variety of schools that offer the required real estate courses such as CNM, Kaplan and Norris Schools. Classes are available on weekends, weekday mornings, weekday evenings and by correspondence. The courses can take about 4 to 6 weeks to complete.

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4. What type of income could I expect?
This is a rather broad question, simply because you get what you put in. This business requires dedication and ambition. Some agents may earn 5 figure, 6 figure and even 7 figure incomes, however there are some who commit very little and earn 4 figures or less. While the sky is the limit when it comes to the income potential, your commitment is necessary to achieve success. 

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5. Where can I find New Mexico license information?
For details on New Mexico's license requirements and applicable information, go to: www.rld.state.nm.us/b&c/recom

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6. What if I have more questions?
You can always contact us for answers to any unanswered questions. Call us at (505) 730-8181 or e-mail info@nmrealty.com

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